The ECB Plunged The Fed Into A Dilemma.

The ECB's policy meeting on Thursday announced that interest rates would remain unchanged and signals that economic stimulus measures might be implemented in December.

Financial website EconMatters commented that the Fed had repeatedly hinted that it would raise interest rates during the year, and that it was also in December when the rate hike was delayed in September.

If ECB moves in December, the Federal Reserve will face a big problem.

After the September Fed policy meeting, financial markets were hit.

Commented that this is the first time the market has sold assets on the basis of doves' statements. The Fed has noticed this situation and quickly appease the market, saying it will raise interest rates within the year.

However, in view of the fact that ECB will launch more stimulus measures at the December policy meeting to achieve the goal of euro depreciation, it will boost European exports.

It will be a huge mistake for the fed to raise interest rates at this time.

The comments suggest that the Fed will eventually do so, and the foreign exchange market will suffer from the double impact of the ECB conference doves and the Fed's hawkish actions.

Back to the top 98, and under the influence of a stronger US dollar, the market will have another massive sell-off.

EconMatters commented:

After the announcement of the ECB super pigeon, the US dollar index returned to 96.30, but the financial market did not seem to have fully digested the significance of the US dollar index.

It has repeatedly reiterated that interest rates will be raised within the year. From the perspective of its statements, the hope is to raise interest rates in December to save a little bit of face.

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As the situation improves, the Fed will raise interest rates by 25 basis points to achieve the initial market expectations this year.

However, the Fed may not dare to raise interest rates, or only symbolically raise interest rates by 10 basis points.

However, the problem is that ECB deliberately devalued the euro, and the dollar has appreciated to the level of the emerging market tremor and the Fed's fear of raising interest rates.